The Rupee opened strong on Friday, supported by renewed foreign inflows into local equities and a decline in the bearish market sentiment. The rupee has successfully retained its rally from last week, holding above the 86 handle, largely on the back of the return of foreign investors to the Indian equity market. On Thursday, foreign investors invested over $1.2 billion in Indian shares. This brings their total purchases of local equities over the past six sessions to $6 billion, marking a major reversal from the previous period of outflows. The rupee surpassing 86 and maintaining that level, was "definitely not what many had expected", a bank currency trader said. He emphasized the significant impact of equity inflows and the reduced prevalence of the previously "well-accepted" USD/INR dip-buying strategy. The rupee's Asian peers were mostly rangebound on the day, awaiting clarity on the extent of U.S. tariffs. U.S. President Donald Trump is poised to announce a slew of new tariffs next week, having already announced a 25% levy on imported cars would take effect on April 3. The announcement of auto tariffs elicited a muted response from Asian currencies, possibly because Trump suggested a more lenient approach to reciprocal tariffs scheduled for next week. The dollar was headed for a steady week on Friday and a quarterly loss next week as concern about tariffs slowing U.S. growth has pushed down U.S. yields, stocks and the currency. The euro , at just below $1.08, was headed for its largest quarterly rise in more than a year, gaining more than 4% since the start of 2025 on a combination of peace prospects in Ukraine, dollar weakness, and a leap in benchmark German yields. Later on Friday, France and Spain publish preliminary inflation figures and the U.S. gets February figures for the Federal Reserve's preferred core PCE inflation gauge. The dollar's decline over the past few months has confounded market expectations for a higher U.S. currency under Trump's tariffs, wiping out long dollar positions and leaving traders unsure how to position or react as he upends trade relations. The Australian dollar is at $0.6291 and headed for a quarterly rise of about 2% and is trading near the middle of a channel it has kept since December. Next week the Reserve Bank of Australia's new monetary policy board - with two new members - meets for the first time. Sterling , at $1.2943, was steady in the Asia session for a gain around 3.5% for the year so far. Oil prices held near one-month highs on Friday and were poised for a third weekly gain on a tightening global supply outlook after the U.S. imposed tariffs against countries buying oil and gas from Venezuela and placed restrictions on Iranian oil trade. Brent crude futures dipped 8 cents, or 0.1%, at $73.95 a barrel as of 0213 GMT. U.S. West Texas Intermediate crude futures were also down 8 cents, or 0.1%, to $69.84 a barrel at 0049 GMT.......